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Performance measurement and incentives : a study on performance management in a changing environment

Haraldsen, Nina Birgithe
Master thesis
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Haraldsen 2009.pdf (644.0Kb)
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http://hdl.handle.net/11250/168349
Utgivelsesdato
2009
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  • Master Thesis [4657]
Sammendrag
This empirical study is an examination of performance management systems in relation to the management control approach Beyond Budgeting. The study focuses on the developments of performance measurement and incentive systems, and the problem statement is:

What is the relationship between performance measurement and incentives?

The method used is qualitative research of managers in a larger international energy company.

Applying a theoretical perspective, the study finds a strong relationship between performance measurement and incentives at higher organizational levels. However, this relationship is not as strong at the subordinate hierarchical levels. Furthermore, the research identifies three central challenges. First, the leadership role is a key successes factor but also a risk factor for the systems and their implementations. Second, the systems have to support the overall business strategy and organizational structure. Finally, a challenge is to reflect the dynamics of the strategic management system in the performance management system.

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